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- Achieve target of ₹5 lakh in 11 years at 20% annual return.
SIP News: In today’s time, SIP in mutual funds has become a great way to create a big fund through small and regular investments. Whereas, if you invest only Rs 1,000 every month, the time taken to achieve the target of Rs 5 lakh depends entirely on the annual returns you get. In this news you have been given detailed information about three different types of return rates.
1. At 12 percent annual return
In this, your total investment remains for about 15 years, that is, about Rs 1.80 lakh and the remaining amount of more than Rs 3.20 lakh will be compounded through interest and returns. Apart from this, 12 percent return in many good equity funds is considered an estimate for the long term.
2. At 15 percent annual return
In this, the time period is only about 13 years and 3 months, where you can easily invest up to Rs 1.59 lakh without any hassle. Talking about its benefits, such returns are seen in the long term in better performing flexi cap funds.
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3. At 20 percent annual return
So, compared to 12 percent return, this target can be easily achieved in about 4 years earlier i.e. in about 11 years.
Know its strengths and market risks
The biggest feature of SIP is its compounding. Even just a few percent improvement in returns reduces the time to reach your goal by several years. But, it is most important to note that returns in mutual funds are never fixed or completely fixed. It completely depends on the ups and downs of the market as well as the scheme you choose.
At the same time, returns in short-term investments sometimes become less. However, there is a possibility of getting maximum benefits if you invest in the long term. Therefore, while investing, always keep in mind that instead of just chasing high returns, focus on investing properly with discipline, so that it can be more beneficial for you when you invest.
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